Hong Fok Corporation (H30) H2 2023 earnings summary

Executive summary

• FY2023 net profit was $95.0m, including $88.1m attributable to owners; FY2022 net profit was $233.9m.�

• Stronger hotel contribution was offset by fewer Concourse Skyline unit sales and a lower investment-property revaluation gain.�

Financial highlights

• Revenue was $110.6m versus $153.9m in FY2022; profit before tax was $99.1m versus $239.3m.�

• Investment-property revaluation gain was $87.1m, down from $197.3m; gains were unrealised.�

• Basic and diluted EPS were 13.72 cents, compared with 33.71 cents in FY2022.�

• Net cash from operating activities was $54.5m, versus $101.5m; year-end cash and cash equivalents were $63.5m, versus $32.1m.�

Outlook and guidance

• FY2024 tourism recovery, improved flight connectivity and China-Singapore 30-day visa-free travel underpin optimism on YOTEL Singapore Orchard Road room rates and occupancy.�

• Investment-property occupancy is expected to remain stable if leasing demand stays generally healthy; Concourse Skyline sales revenue is expected to continue.�

• Singapore residential demand is expected to remain moderately weak, with higher ABSD deterring foreign buyers and local buyers driving momentum.�